There is a clear demand for modernization and tech investment: 59% are worried their organizations’ ability to manage data won’t meet GenAI’s demands without significant investment. With the right approach to this investment, enterprises will be better prepared to overcome productivity challenges and satisfy end users who demand continuously improving experiences.

Enterprises plan to spend on average $35.5 million on IT modernization in 2024. More than a third of that will be on AI, with the average enterprise investing over $21 million on the technology in 2023-24, and $6.7 million on generative AI (GenAI) specifically. The drivers for this are clear: rapidly prototyping and testing new ideas, making employees more efficient, and identifying and capitalizing on new business trends. Yet enterprises recognize there are challenges ahead — from ensuring AI can be used effectively and safely, to having sufficient compute power and data center infrastructure in place.

“Enterprises have entered the AI age, but so far are only scratching the surface,” said Matt McDonough, SVP of product and partners at Couchbase. “Almost every enterprise we surveyed has specific goals to use GenAI in 2024, and if used correctly this technology will be key to managing the challenges facing organizations. From keeping pace with end-user expectations for adaptable applications, to meeting ever-accelerating productivity demands, GenAI-powered applicatio